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10 Oct 2018 - 07:00 CET

NN Group excludes investments in oil sands

NN Group has further strengthened its responsible investment policy. Together with its asset manager NN Investment Partners (NN IP), NN Group has made the decision to place investment restrictions on companies involved in oil sands. In addition to NN’s own assets, these restrictions will apply to all funds managed on behalf of customers.

Oil sands, also known as tar sands or crude bitumen, is a form of heavy oil found in sand and rock. Oil sands development poses environmental and social challenges. This is because the greenhouse gas emissions associated with producing fuels from oil sands are higher than conventional crude oil. Furthermore, the production of oil sands and its transport via pipelines generates significant human rights concerns, and is a serious cause of local environmental pollution.

Dailah Nihot, member of the NN Group Management Board: ‘Climate change presents a risk to our investments, but can also provide opportunities if business models are timely adjusted. Although our preferred approach is to engage with companies to support them in the transition to a low-carbon economy, we also want to direct our efforts to those sectors where we believe that our engagement can be most effective. If global warming is to be kept below 2 degrees in line with the Paris Agreement, we  believe oil sands should not be developed. After evaluating the oil sands sector, we concluded exclusion sends an important signal in support of the quest for alternatives.’

The policy applies investment restrictions on companies whose business models are dependent on the extraction of oil sands. This is defined as a share of oil sands higher than 30% of the total oil and gas average production in barrels of oil equivalent per day. Companies with less than 30% share of oil sands will be monitored, and evaluated in two years’ time. Furthermore, pipeline operators are also restricted when involved in oil sands transportation projects that are in dispute, and when engagement is not expected to achieve the desired results.

The restricted companies have been placed on our publicly available Exclusion List. This means that we will divest the equity and fixed income holdings that are held within mutual funds managed by NN IP. With regard to NN IP’s client assets that are managed in a discretionary way, we will encourage our customers to follow our decision. The restrictions also apply to NN’s proprietary assets, which are currently not exposed.

  • NN Group profile

    NN Group is an international financial services company, active in 18 countries, with a strong presence in a number of European countries and Japan. With all its employees, the Group provides retirement services, pensions, insurance, investments and banking to approximately 17 million customers. NN Group includes Nationale-Nederlanden, NN, Delta Lloyd, NN Investment Partners, ABN AMRO Insurance, Movir, AZL, BeFrank and OHRA. NN Group is listed on Euronext Amsterdam (NN).
  • Important legal information

    Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation: (1) changes in general economic conditions, in particular economic conditions in NN Group’s core markets, (2) changes in performance of financial markets, including developing markets, (3) consequences of a potential (partial) break-up of the euro or European Union countries leaving the European Union, (4) changes in the availability of, and costs associated with, sources of liquidity as well as conditions in the credit markets generally, (5) the frequency and severity of insured loss events, (6) changes affecting mortality and morbidity levels and trends, (7) changes affecting persistency levels, (8) changes affecting interest rate levels, (9) changes affecting currency exchange rates, (10) changes in investor, customer and policyholder behaviour, (11) changes in general competitive factors, (12) changes in laws and regulations and the interpretation and application thereof, (13) changes in the policies and actions of governments and/or regulatory authorities, (14) conclusions with regard to accounting assumptions and methodologies, (15) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, (16) changes in credit and financial strength ratings, (17) NN Group’s ability to achieve projected operational synergies, (18) catastrophes and terrorist-related events, (19) adverse developments in legal and other proceedings and (20) the other risks and uncertainties contained in recent public disclosures made by NN Group.

    Any forward-looking statements made by or on behalf of NN Group speak only as of the date they are made, and, NN Group assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason.

     

    This document does not constitute an offer to sell, or a solicitation of an offer to buy any securities.

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